Would you like to be ten percent larger?
Who wouldn't.
But, of course, it is relative to the base size, isn't it. If you aren't starting with much, 10% isn't going to make too much of a difference, and perhaps, if you have a lot, it might not make much difference either.
We are talking about money here, right?
For example:
Great math Taraz!
However, what is the impact of that ten percent on the receiver?
If we were looking at making an impact on daily experience, we can see that the 100 does have an effect, but it doesn't necessarily mean that it will add to the long-term possibilities. For the mid, it does increase the long-range position potential, by giving a large increase to the investment possibilities. For the top end, it adds to increasing the wealth gap.
Looking at possibility to invest where they say that we should put aside 10% of our salaries, we can see how much disparity there can be, but it isn't in the percentage.
Low, mid, high - Where are you on the scale, adjusted for your location?
For those who have a salary, how much do you need to add ten percent more to it?
I was thinking about this today as I put a little more HBD into savings, so that I now have around 2000 HBD there. With the 20% a year earnings on it, it adds about a dollar a day, or 400 dollars a year, if not compounding it into itself. A little more if compounding. 400 doesn't buy much, but going on the average, that is around about 1% of an average, Finnish, yearly salary. That doesn't sound like a lot, but when governments and unions are spending months arguing over 2 or 3 percent increases, it is actually quite a lot.
My plan is to work as hard as I can, so that I am able to take advantage while I can and increase revenue and income streams. While many believe that money doesn't buy happiness, I also have the view that due to suffering a stroke a few years ago, my ability to generate income is more limited than it used to be - either by my incapacity to learn and improve as fast as I could, or the likelihood of a shorter lifespan, which is compounded by other health factors too. This means that it is a bit like being a professional athlete (without the skills), where the career is likely to be quite short, so enough has to be made in that period, to tie over for a lifetime.
This is a big part of the reason I am so interested in these things now, because I have been made painfully aware (daily constant pain) of my reality. Since I have a family to think about, it isn't enough that I just take the view of enjoying myself, if there is going to be an expense to them. However, what is also interesting is that doing this is enjoyable for me, because even though it is work, it is meaningful work, in my opinion.
Having meaningful work to do is part of building life satisfaction, which is likely a good part of the reason that so many people are dissatisfied and bitter. The amount of times I have been called a wage slave by unemployed people is high, yet those same people seem to be having a far worse life experience than myself, so who is the slave?
In a world that is dominated by the economy and by extension, personal finance, an inability to generate income is opportunity impotence. Some can say that money isn't important, but when they are struggling to pay for baby formula, or doctor visits, they would likely wish they had a little more to cover the costs, right? I know I did. And after the stroke when I was unsure how I could work or if I would ever be employable again at all, the thing that came to mind wasn't my health, it was my wealth.
Or lack thereof.
If I was to have died, what would happen to my wife and daughter? They wouldn't be able to stay in this house, because the little life insurance I have wouldn't cover it, nor would my wife's single income, so they would be forced to move, or rely on family to make ends meet. This isn't to mention the other costs that they would have to give up, like my daughter's dance classes and swimming practice. It is not that I earn that much, but it is enough that with our incomes, we can afford a little bit more than just surviving, but without that income, they would have to pare back to survive mode only.
The future is uncertain, so a lot of people take that as a sign to spend as much as they can on enjoyment. However, I am more inclined to look at the statistics and that the future is certain enough that we'll likely survive, but we will also likely face a lot of challenges, like health like strokes and cancer scares, both of which have impacted my family in the last two years, and getting older means that the odds of illness are increasing.
So, I look at trying to find a balance in work, play and semi-passive income, so that this way, there is something to fall back upon, in various scenarios. I get to spend time with my family and be completely present, but also have meaningful salaried work, as well as meaningful secondary work, like on Hive. Meaningful for me, you might not find Hive valuable at all.
Rule of 72: 72/20 = 3.6
The doubling time on 20% is around 3.6 years, which means that 2000 HBD turns into 16,000 in about a decade, assuming all things remain equal. Which they won't. But, it is a start and with other activities, investments and being consciously active and paying attention to providing tradeable value to the market, there is the potential to earn more. It might not end up in retirement, but if in another ten years from now, if I am not quite as lucky, I won't to make sure that my wife and daughter won't have to compromise their lives, because of my death.
If I can add 10% to my income each year, by the time that decade arrives, there will be around 1.5 years worth of my income as a safety net for them to either pay down the loan (which will also be smaller by then), or cover themselves for three or four years being careful. This puts them in a different position, one where they won't have to worry about money, and they can get on with their lives without feeling the financial loss of me.
Unfortunately for my wife however - I can't make everything 10% larger.
Taraz
[ Gen1: Hive ]
